The Extended Reality Market is estimated to be valued at US$ 46.3 Bn in 2023 and is expected to exhibit a CAGR of 2.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Extended reality refers to all real-and-virtual combined environments and human-machine interactions generated by computer technology and wearables. It includes augmented reality (AR), virtual reality (VR), and mixed reality (MR) and allows the user to interact with digital information in innovative ways by overlaying audio and visual enhancements onto the physical world. Extended reality has applications across industries including education, healthcare, retail, manufacturing, architecture, advertising and more. Through AR/VR/MR, complex simulations can replace physical prototypes lowering costs. In manufacturing, workers can access instructions/training virtually improving productivity. In retail, virtual product try-ons boost sales.
Market Dynamics:
The first key driver for the Global Extended Reality Market is growing adoption of cloud-based extended reality platforms. Cloud computing allows delivery of extended reality content and services over the internet without requiring high performance hardware. This is positively impacting adoption as users need only a headset and internet connection for an immersive experience. Major tech players like Microsoft, Amazon, and Google offer cloud-based extended reality development platforms making content creation simpler and distribution scalable. The second driver is increasing investments from technology giants into the metaverse. Companies are investing billions to build futuristic virtual worlds which will be entirely experienced through extended reality technologies. This will drive widespread demand for AR/VR/MR devices and applications across different industry verticals.
Segment Analysis
The extended reality market can be segmented into augmented reality, virtual reality, and mixed reality. Among these, the augmented reality segment dominates the market and is expected to continue its dominance over the forecast period. This is because augmented reality allows integration of digital information with the physical world in real-time, which is being widely adopted across various sectors like retail, healthcare, automotive etc. for applications such as inventory management, medical training of healthcare professionals and collaborative product design.
PEST Analysis
Political: Favorable regulations around data privacy and security will boost the adoption of extended reality technologies. However, regulations around extended reality content may pose challenges.
Economic: High initial investments required for development of extended reality hardware and software poses challenges for startups. However, the growing GDP and disposable incomes will drive increased spending on these technologies.
Social: Increased digitalization and raising awareness about the benefits of extended reality is positively impacting the market. However, health risks associated with extensive use can hamper growth.
Technological: Developments in 5G networks, processors, displays and sensors will further improve user experiences and drive widespread adoption. However, concerns around technological readiness may exist in some underdeveloped regions.
Key Takeaways
The global extended reality market is expected to witness high growth, exhibiting CAGR of 23% over the forecast period, due to increasing investments from technology giants and growing applications across various sectors.
The North America region is expected to dominate the market over the forecast period, owing to high technology adoption and significant presence of key players in the US and Canada. The Asia Pacific region is anticipated to exhibit the fastest growth rate, with China, Japan and India emerging as major markets on back of growing online gaming and e-commerce industries.
Key players operating in the extended reality market are Meta Inc., HTC Corporation, Unity Technologies, Microsoft Corporation, Samsung Electronics Co., Ltd., Magic Leap, Sony Corporation, Vuzix Corporation, Apple Inc, Niantic Inc., Northern Digital Inc., Snap Inc., SoftServe, and Accenture. Major players are focusing on partnerships and investments in hardware and content development to strengthen their product portfolios.
Read More: https://www.rapidwebwire.com/extended-reality-market-size/
Extended Reality Market report published by Value Market Research, which studies the future outlook of the market.
It includes the size, share, growth, trends, key players, segments and regional analysis in detail during the study year 2020-2027.The research report also covers the comprehensive profiles of the key players in the market and an in-depth view of the competitive landscape worldwide.
The major players in the extended reality market include Augray Ltd., HTC Corporation, Microsoft Corporation, Northern Digital Inc., Qualcomm Technologies Inc., SoftServe Inc., Softweb Solutions Inc., SphereGen Technologies, and VertexPlus Softwares Pvt.
This section consists of a holistic view of the competitive landscape that includes various strategic developments such as key mergers & acquisitions, future capacities, partnerships, financial overviews, collaborations, new product developments, new product launches, and other developments.Get more information on "Global Extended Reality Market Research Report" by requesting FREE Sample Copy at https://www.valuemarketresearch.com/contact/extended-reality-market/download-sampleMarket DynamicsThe rising penetration of smartphones and mobile gaming is the significant factor that drives the extended reality market across the glob e. In addition, a rise in the adoption of augmented & virtual reality solutions in many diverse industries such as education, entertainment, and healthcare also boosts the market growth.
Moreover, the use of extended reality technology in the healthcare sector reduces costs, and improving outcomes for individuals without taking risking, propels the demand.
However, the lack of infrastructure and interoperability issues of immersive 3D graphics are some of the hindering factors for the growth of the market during the forecast period.
The report "Extended Reality Market with COVID-19 Impact Analysis by Technology (AR, VR, MR), Application (Consumer, Commercial, Enterprises, Healthcare, Aerospace and Defense), Offering, Device Type, and Region(North America, Europe, APAC) - Global Forecast to 2026", is expected to grow from USD 33.0 billion in 2021 to USD 125.2 billion by 2026, at a CAGR of 30.6%.
The market growth can be attributed to several factors, such as surging deployment of extended reality in education sector and industrial training, rising demand for extended reality devices and technology in global automotive industry, surging adoption of extended reality in healthcare sector, and increasing demand for extended reality in entertainment and gaming industry.
The growth of the VR devices segment of the market is expected to be led by HMD.
The consumer segment of the market comprises gaming and entertainment applications wherein AR technology is used to create 3D visual objects in the real world.
VR technology also offers remarkable results regarding visual effects when used in gaming and sports broadcasts.
Some of the key companies operating in the market are Microsoft (US), Sony (Japan), Oculus VR (Facebook) (US), HTC (Taiwan), Google (US), Samsung Electronics (South Korea), Apple (US), PTC (US), Seiko Epson (Japan), and so on.
